13-A company has bonds outstanding with a par value of $100,000. T on these bonds is $4,500. The company retired these bonds by buying at 97. What is the gain or loss on this retirement? A. $0 gain or loss. B. $1,500 gain. C. $1,500 loss. D. $3,000 gain.
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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